Arianna Galante, Director of Agency Dept. ContactLab Swiss E-commerce Conference, 27.11.2014 Data on: Average basket value by sector Digital penetration in Switzerland Volume of online shoppers Best seller and trends on online shopping Favourite online shopping channels Payment methods selected by swiss users Habits and behavior of Swiss internet users divided by cantonal aggregations and linguistic areas Full report available for free download http://e-commerceconference.ch/download-research/

1. Swiss Internet Users & E-Commerce Research
Arianna Galante, Director of Agency dept. ContactLab

2. •NetComm Suisse’s Observatory on Swiss digital behaviour was created in collaboration with ContactLab to offer e-commerce managers, institutions and decision-makers a solid quantitative basis to
understand the behaviour of Swiss internet users
evaluate market performance
activate public and private policies to sustain growth in the sector
•It is a first on the Swiss market, providing a unique source of data on the digital habits of Swiss consumers and the purchasing behaviour of online shoppers in the country
•ContactLab was chosen by NetComm Suisse for the solidity of its methodology and the ability to analyze and interpret the data collected, as proven in ContactLab’s European Digital Behaviour Study, an ongoing project since 2009 covering 5 key European markets
A BRAND NEW OBSERVATORY ON SWISS DIGITAL BEHAVIOUR

3. •The methodology applied ensures that the reality of internet use in Switzerland is accurately represented: the sample was defined based on socio-demographic criteria using analyses from leading official statistical sources (BFS)
•A CAWI survey was carried out amongst habitual internet users aged 16 – 65: individuals who connect at least once a week, regardless of the device and motivation
•Sample:
1.078 individuals
Interviewed between July 11-23
Average interview duration: 25 minutes
METHODOLOGY

4. REPRESENTED UNIVERSE AND SOCIO-DEMOGRAPHIC PROFILE
REGULAR INTERNET USERS 16-65 Y.O.
n=1.078
n= 1.041
n=1.075
n=1.028
n=1.060
n=1.026
MERCHANT OVERSAMPLING
n= 19.207
ESTIMATED UNIVERSES
4,8 mio.
26,5 mio.
36,3 mio.
44,1 mio.
33,0 mio.
21,3 mio.
Socio-demo profile (1/ 5)
CH
(n=1.078; %)
IT
(n=20.258; %)
UK (n=1.075; %)
DE (n=1.028; %)
FR
(n=1.060; %)
ES (n=1.026; %)
Gender:
Male
53
53
51
52
52
52
Female
47
47
49
48
48
48
Age groups:
16-24
18
19
20
20
18
16
25-34
20
21
46
21
22
26
35-44
21
27
9
21
22
27
45-54
22
20
10
26
21
20
55-65
19
13
15
12
17
11
Average age
40
39
35
39
40
39
CH

5. NETCOMM SUISSE OBSERVATORY: TARGET POPULATION Source: EUROSTAT/ BFS data processed by ContactLab
85
73
88
79
Regular use of the internet
Ecommerce last 12 months
Individuals 16-74 y.o.
Individuals 16-65 y.o.
Total population
(.000)
Regular internet users
(.000)
Online shoppers
(.000)
16-74 years old
6.100
5.200
4.400
16-65 years old
5.400
4.800
4.200

6. Total tablet users 45%
Total smartphone users 68%
PC last 4 weeks (at home or work) 96%
OVERLAP BETWEEN CONNECTION METHODS LAST 4 WEEKS
Base: total users 16-65 y.o., n=1.078; %
38%
Tablet
last 4 weeks
33%
Smartphone last 4 weeks 55%
2%
5%
1%
25%
28%
1%
Total mobile users last 4 weeks 62%
Penetration
Population estimate(.000)
Pc only
38%
1.800
Mobile
62%
3.000
Triple device
25%
1.200

7. MAIN ACTIVITIES CARRIED OUT ONLINE Base: total users 16-65 y.o., n=1.078; %
99
94
93
90
87
86
81
75
70
60
97
77
61
48
57
72
67
44
39
20
95
64
32
16
42
65
30
28
30
9
Email
News
Information on
products/
services
Online
shopping
Multimedia
entertain.
Social
Network
Home-banking
Sport &
hobbies
Online Games
E-learning
Last 12 months
Last 30 days
Last 7 days

8. KEY ECOMMERCE DRIVERS (90% OF USERS)
Base: online shoppers aged 16-65, n=970; %
What are for you the most important considerations when you shop online or are planning to shop online instead of at physical stores/ traditional channels?
42
40
35
34
34
32
31
26
24
20
11
8
Saving time
Shopping at
any time
Being able
to compare
prices
The wide
choice of
products
Being able
to easily find
products I
want
Payment
methods
The cost-
effectiv.
Clearly
stated
options for
returning
goods
Guarantees
of data
privacy
Authorizing
payment
after receipt
of product
Choosing
date/ time of
delivery
Seeing a
warranty
seal

9. INFORMATION CHANNELS FOR ONLINE SHOPPING
Base: users aged 16-65 shopping online in the last 12 months for the reported categories, n=758; %
50
26
26
25
20
17
16
14
13
12
9
8
7
the website of product/ brand
words of mouth
newsletters
a prices and features comparison website
commercial/ above the line
reviews on specialized websites
e-commerce website
specialized magazines
the store / point of sale where I asked for infos
online forum/ blogs
customer service line
Facebook page of product/brand
an event sponsored by the brand

10. 82
59
58
52
20
...find interesting
promotions within the
newsletter
...buy online after
having browsed on the
website of the product /
service from a link
within the newsletter
...save time when
purchasing a product,
thanks to the
suggestions and
information contained in
the newsletter
...go to the store and
buy the products /
services promoted in
the message when you
receive an offer in a
newsletter
...share a newsletter
through social media
when it contains
interesting promotions
E-COMMERCE VIA E-NEWSLETTER Base: newsletter users 16-65 y.o., n=914; %

11. PRODUCT CATEGORIES PURCHASED ONLINE IN THE LAST 12 MONTHS Base: users aged 16-65 online shopping in the last 12 months for at least one product or service; n=872; %
52
36
32
29
28
26
24
24
20
20
19
17
15
15
15
Clothing, fashion items
Transportation
Books
Tickets/reservations
Holiday
CDs, DVDs
Mobile apps
Tech products/ electronics
Beauty products/cosmetics
Computer software
Food, beverages
Music/multimedia file
Household items
E-books
Games of chance/ bets

12. AVERAGE ONLINE SHOPPING FOR EACH CATEGORY IN THE LAST 12 MONTHS
Base: users aged 16-65 online shopping in the last 12 months in any category; average in CHF
CATEGORIES
PENETRATION
UNIVERSE
(.000)
AVG ONLINE EXPENDITURE (YEARLY)
(CHF)
EXP. VARIATION LAST PERIOD (stated)
Clothing, fashion items
52%
2.184
463
+ 16,3%
Transportation
36%
1.512
935
+ 22,0%
Books
32%
1.344
149
+ 10,5%
Tickets/reservations
29%
1.218
337
+ 19,3%
Holiday
28%
1.176
1.325
+ 21,4%
CDs, DVDs
26%
1.092
145
+ 8,8%
Mobile apps
24%
1.008
205
+ 11,7%
Tech products/ electronics
24%
1.008
566
+ 12,4%
Beauty products/cosmetics
20%
840
250
+ 11,7%
Computer software
20%
840
264
+ 9,8%
Food, beverages
19%
798
670
+ 8,1%
Music/multimedia files
17%
714
80
+ 14,4%
Household items
15%
630
595
+ 10,2%
E-books
15%
630
125
+ 16,5%
Games of chance/ bets
15%
630
350
+ 11,8%
Sporting equipment
13%
546
386
+ 13,7%
NB: for categories with ,10% penetration, due to the reduced sample base the values are not shown as they would have no statistical significance
Average annual online shopping total:
–UK: 2.239 CHF
–CH: 1.928,5 CHF
–IT: 1.501 CHF
–DE: 1.501 CHF
–FR: 1.372 CHF
–ES: 1.301 CHF
CH

13. TIME DURING THE DAY FOR ONLINE SHOPPING Base: users aged 16-65 shopping online in the last 12 months, n=970 (90%); %
0
10
20
30
40
50
60
70
As soon as I wake up, when I’m still in bed
Early morning
(7-9)
Mid-morning
(10-11)
Midday (12-1)
Early to mid-
afternoon (2-
4)
Late
afternoon (5-
6)
Evening (7-8)
At night (9-11)
Late night
(after
midnight)
Right before
going to
sleep, in bed
38
62
No preferred
time of day
Online shoppers
with preferred
time of day
(n=601)
↓= 100

14. PREFERRED METHOD OF PAYMENT FOR ONLINE PURCHASES
Base: users aged 16-65 online shopping in the last 12 months for at least one product or service, n=872; %
55
40
35
24
14
11
11
9
7
5
Invoice
Standard credit card
Paypal
Bank transfer (online)
Prepaid or rechargeable credit card
Payment on delivery (C.O.D.)
Post-office issued cheque
Sofort/ direct bank transfer
Payment in-store, after reserving online
Bank transfer (in branch)

15. 42
29
22
20
18
13
7
7
7
I prefer to
check product
quality in
person and
get advice
from a trusted
vendor
I think costs of
shipping are
too high
I prefer to pay
in cash
I have little
trust in online
payment
methods
I’m afraid of having problems or of not receiving the product
I find that the
procedures
for cancelling
the
transaction
are often
unclear and
complicated
I can’t find products/ services I’m interested in
I can’t find affordable deals
I find online
buying
processes
complicated
KEY ECOMMERCE BARRIERS Base: total users aged 16-65, n=1.078; % of quotes
Some people interviewed previously have indicated the reasons why they do NOT buy products or services online or make few purchases.
Which of the following statements do you agree with?

16. KEY ECOMMERCE BARRIERS : ONLINE SHOPPERS vs NON ONLINE SHOPPERS Based on: Users aged 16-65 who have n=970/ have not purchased online over previous 12 months, n=108
0
10
20
30
40
50
60
70
I prefer to
check product
quality in
person and
get advice
from a trusted
vendor
I think costs
of shipping
are too high
I prefer to pay
in cash
I have little
trust in online
payment
methods
I’m afraid of having problems or of not receiving the product
I find that the
procedures
for cancelling
the
transaction
are often
unclear and
complicated
I can’t find products/ services I’m interested in
I can’t find affordable deals
I find online
buying
processes
complicated
Online shoppers (n=970)
NON online shoppers (n=108)

17. 12
2
8
36
42
within the next 3
months
in 3 - 6 months
in 6 - 12 months
yes, but I don’t know when
no, I don’t think I will make purchases online
NON ONLINE SHOPPERS: INTENTION TO PURCHASE IN THE NEAR FUTURE Base: total users 16-65 y.o., n=1.078; %
Intention to shop online:
(non online shoppers, 10%; n=108)
58%
Total prospects
22%
next 12 months
90
10
Online shoppers
Non online
shoppers

18. 90
3
51
10
48
32
32
7
CROSS-BORDER ONLINE SHOPPING
Base: total users 16-65 y.o., n=1.078; %
Online shoppers
Tot. cross-border online shoppers
Only on Swiss sites
Both foreign and Swiss sites
Only cross-border online shoppers
Don’t know

19. CROSS-BORDER ONLINE SHOPPING
Base: total users 16-65 y.o., n=1.078; %
Purchases distribution:
Expenditure distribution:
4
5
8
8
7
11
19
38
100% on foreign sites
90-80% on foreign sites
70-60% on foreign sites
50% on foreign sites
40-30% on foreign sites
20-10% on foreign sites
Less than 10% on foreign sites
0% (only on swiss sites)
4
5
7
8
8
12
18
38
100% on foreign sites
90-80% on foreign sites
70-60% on foreign sites
50% on foreign sites
40-30% on foreign sites
20-10% on foreign sites
Less than 10% on foreign sites
0% (only on swiss sites)
On average, 23% of Swiss online expenditure is cross-border

20. ONLINE SHOPPERS: DOMESTIC BUYERS vs CROSS-BORDER BUYERS Base: users aged 16-65 online shopping in the last 12 months net «not indicated»; n= 893
38%
Tot. cross-border shoppers: 62%
Avg online yearly exp.: 2.447 CHF (+28% vs tot. online shoppers)
36% of expenditure is on foreign sites
(that is ca. 2.300 mio. CHF)
4%
ONLINE SHOPPERS CLUSTERS
%
Both domestic AND cross-border
58
Domestic shoppers only
38
Cross-border only shopper
4
58%
Domestic shoppers only Avg online yearly exp: 1.096 CHF
(-43% vs tot online shopper)

21. 29
24
19
14
12
7
6
3
Ecommerce portals with various
product categories
Websites specialized on clothing
and Footwear
Websites specialized on travel /
tourism
Online Auctions
Websites specialized on games
and sports
Websites specialized on health and
wellness
Websites specialized on technology
Websites specialized on cars and
motorcycles
CROSS-BORDER SHOPPERS (51%): MAIN TYPES OF ECOMMERCE SITES
Base: online shoppers 16-65 y.o. on foreign sites, n= 549, % (codified verbatim)
-Amazon, 27%
-Others, …
-Ebay, 13%
-Others, …
in clothing

22. 5%
10%
8%
54%
16%
5%
CROSS-BORDER ECOMMERCE (51%): MAIN IMPORT SOURCES
Base: online shoppers 16-65 y.o. on foreign sites, n= 549, %
Online purchases from…
1°
Germany
54%
2°
France
16%
3°
U.S./ North America
10%
4°
United Kingdom
8%
5°
Italy
5%
6°
China
5%

23. CROSS-BORDER ECOMMERCE (51%): REASONS FOR BUYING ON FOREIGN SITES
Base: online shoppers 16-65 y.o. on foreign sites, n= 549, %
66
49
33
7
3
2
2
1
6
Better price
Availability of products / services (not offered on Swiss
sites)
Greater selection of products, greater choice
Nicer, better designed foreign sites
More trustworthy, secure payment method
More guarantees on product delivery
Post-sales services (return of goods, call center, etc.)
Better security for treatment of personal information
Other reasons

24. •Switzerland is one of the leading countries in terms of habitual internet use
Almost 90% of Switzerland’s total population aged 16 to 65 regularly use the internet.
•PC remains the foremost connection method (96% in the past 4 weeks), followed by smarthphones (68%) and tablets (45%) but 25% of the consumers are triple-device users
•The main activities carried out online are email, infoshopping and online shopping: while email use is consistent whatever the time frame, shopping-related browsing is less of a daily activity but remains frequent
•The most common online purchases are for “clothing”, involving over 1/2 of online shoppers, vs
 “transport/tickets for travel” (36%)
“books” (32%)
“tickets for events, etc.” (29%)
“trips/holidays” (28%)
KEY FINDINGS (1/3)

25. •22% of non online shoppers express an intention to do so over the next 12 months, but 42% do not believe they will
•Top information sources are product / brand websites (50%), with word of mouth and newsletters at 26%. Newsletter recipients express a clear influence of the messages they receive on the purchases they make, whether online or offline
•Taking around 26 different categories into account, an online shopper in Switzerland spends on average approximately 1,930 CHF per year, vs UK 2,239 CHF and ES 1,301 CHF.
•The preferred payment method for Swiss shoppers is “invoice”, followed by “standard credit card” and “Paypal”
•The two main drivers provided for using e-commerce – “saving time” and “shopping at any time”- are specific to the Swiss online shopper, highlighting them as having a particularly evolved online shopping profile.
KEY FINDINGS (2/3)

26. •62% of online shoppers in Switzerland bought products and services on foreign sites in the last 12 months
4% used exclusively foreign sites
38% made purchases only using Swiss e-commerce websites
The most popular foreign country for making online purchases is Germany, followed by France and the USA
•Users making purchases outside Switzerland generally spend more – approximately 2,500 CHF (+28% compared to average annual online spending) – mainly for reasons linked to convenience, availability of products which cannot be found locally and finding foreign players who offer greater variety
KEY FINDINGS (3/3)

27. THANK YOU Arianna Galante Director of Agency dept. ContactLab arianna.galante@contactlab.com @digitalzia Full report available for free download http://e-commerceconference.ch/download-research/